An FBI source said Sultana was arrested on weapons charges. Sultana will appear in federal court in San Jose on Thursday.

Sheriff's Sgt. Patrick Dimick said no shots were fired. Some residents mistakenly thought loud sounds from grenades were caused by gunfire.

Marc Lesnick lives on 36th Avenue less than 200 yards from the raided house. "They used seven flash grenades, I think they went in each room and fired off a grenade."

He said neighbors were startled and scared by the pre-dawn ordeal.

"It lit up my bedroom and woke me up. People were screaming. I tired calling 911 and I couldn't get through because so many people were also calling," Lesnick said.

By 10 a.m., life in the laid-back surfing neighborhood looked like it had returned to normal as lineups of surfers caught smooth 3-4 foot waves below East Cliff Drive.

A criminal records search of Sultana shows he was convicted in the early 1980's of voluntary manslaughter in connection to the death of Simon Phillips. Phillips, 22, was a heavy metal musician who was found beaten to death in his westside Santa Cruz house.